Notices of defaults (NOD) are on the rise in Santa Clara County. Does this mean more short sales or more foreclosures? Take a look at year over year changes in Santa Clara County.
In August of 2009, there was 1256 NOD’s with 439 Foreclosures
In August of 2008, there was 1200 NOD’s with 853 Foreclosures
In August of 2007, there was 597 NOD’s with 186 Foreclosures
We could look at these numbers and think one of two things is happening. One school of thought would be that the lack of foreclosures vs. the notice of defaults could mean that there simply are more short sales waiting to close. Another prospective would be that the foreclosure numbers are low since the NOD numbers where low in months past.
You see it takes about 4 months from when the NOD is filed until the property is lost back to the bank, becomes a foreclosure and ultimately a REO for sale by the banks. The reason why the nod’s and foreclosure numbers where low in previous months was do to the moratoriums put on by the federal government and the state of California. Now that theses moratoriums have been lifted more NOD’s have been filed.
Will this lead to more foreclosure property on the market? We will just have to wait and see.
